Zero,Inc.agreed to build Millie a storage building for $8,000.After beginning the project,Zero realized that it could not complete the job and make a profit.Zero demanded $9,500 to complete the building.Millie agreed to pay the $9,500.When the project was complete,Millie tendered $8,000 to Zero for the job.If Zero sues Millie for the remaining $1,500,
A)Zero will win because there was consideration for the additional $1,500.
B)Zero will win because Millie had a preexisting duty to pay any additional amounts.
C)Zero will lose because there was no legal consideration to support the additional $1,500.
D)Zero will lose because the UCC does not require consideration to modify an existing contract.

Question

Quizplus · Accepted Answer

C) Zero will lose because there was no legal consideration to support the additional $1,500. In contract law, a modification of a contract requires new consideration to be binding. Since Zero had a preexisting duty to complete the project for the agreed price of $8,000, demanding more money to fulfill that same obligation does not constitute new consideration.

Zero,IncAgreed to Build Millie a Storage Building for $8,000